Latest news with #HBM3E
Korea Herald
6 days ago
- Business
- Korea Herald
SK hynix posts record quarterly profit on AI chip boom
Chipmaker eyes double HBM sales this year, with next-gen chips ready for Nvidia SK hynix, the world's top memory chip-maker by revenue, hit an all-time high quarterly operating profit of 9.2 trillion won ($6.73 billion) in the April-June period, thanks to soaring demand for its high bandwidth memory chips, a core component in AI processing. Reporting the second quarter's earnings, the company said it aims to double HBM sales and shipments this year compared to 2024, as well as increase its capital expenditure beyond its initial plans for rising HBM demand starting in 2026. The chipmaker reported that it has recorded 22.2 trillion won in sales in the second quarter, up 35.4 percent on-year. The operating profit also surged 68.5 percent over the same period, and net profit came in at 6.99 trillion won. Backed by strong earnings, SK hynix' cash holdings rose by 2.7 trillion won on-quarter to 17 trillion won. Its debt ratio stood at 25 percent, with net debt ratio at 6 percent, down 4.1 trillion won from the previous quarter. "We are on track to meet our goal as a full stack AI memory provider, satisfying customers and leading market expansion through the timely launch of products with best-in-class quality and performance required by the AI ecosystem," Song Hyun-jong, president and head of Corporate Center at SK hynix, said. "We will carry out part of the planned investments preemptively this year for a smooth delivery of major products with visible demand for next year, including HBM." The strong performance was driven by the full-scale ramp up of 12-layer HBM3E sales and increased NAND flash shipments across all applications. The company also attributed its recent success to an aggressive investment by global big tech companies into AI. "There are concerns about a potential demand slowdown in the second half (of the year), but major market fluctuations seem unlikely. We plan to focus operations on products with clear demand visibility," Kim Kyu-hyun, head of DRAM Marketing, said. While HBM4 involves significant technical upgrades — including expanded (input/output) for higher bandwidth, design changes for lower power consumption and the application of logic processes to the base die — SK hynix said it is factoring in the increased production costs as much as possible into its pricing strategy. "We aim to establish optimal pricing in collaboration with customers, while maintaining a healthy level of profitability," said Kim Ki-tae, SK hynix vice president and head of HBM sales and marketing. Regarding the latest US export controls possibly weakening the role of its Chinese manufacturing facilities, SK hynix emphasized that its China fabs will remain a core part of its global memory production strategy. "Shortage in legacy products, such as DDR4 and LPDDR4, are emerging across the industry, and we see our China fab playing a key role in meeting that demand," Song said. He also forecast that long-term demand for the legacy products would remain steady, particularly from Chinese smartphone makers. Capacity for older-generation DRAM chips has tightened in the past months as global production shifts toward HBM chips and newer DRAM standards like DDR5 and LPDDR5. Over Nvidia's plan to supply the H20 chips to China, SK hynix said it is ready to respond quickly if customer demand and supply conditions align. The company currently supplies 8-layer HBM3 — the previous-generation product — for the H20. SK hynix also plans to launch its 24Gb GDDR7 in the second half of the year, which is reportedly intended for Nvidia's upcoming RTX Pro AI accelerator targeting the Chinese market. Additionally, the company is focusing on strengthening its core DRAM technology, which underpins HBM. The company said it is developing next-generation technologies such as 3D DRAM and vertical gate architectures, and plans to begin transitioning to its sixth-generation 10-nanometer-class process in the second half of this year, with full-scale adoption scheduled for next year. In the NAND business, the company said it will take a cautious investment approach, prioritizing profitability and market demand, while continuing product development in anticipation of future market recovery. The company plans to expand sales of QLC-based high-capacity eSSDs and strengthen its product portfolio built on 321-layer NAND. Regarding its M15X fab in Cheongju, SK hynix said it plans to begin operations in the fourth quarter of this year, with mass production of next-generation HBM scheduled to start next year.
Wall Street Journal
6 days ago
- Business
- Wall Street Journal
SK Hynix to Boost Investment After Record Results on Strong AI Chip Demand
SK Hynix 000660 0.09%increase; green up pointing triangle, the main supplier of high-bandwidth-memory products for Nvidia, plans to increase spending this year to meet strong demand for artificial-intelligence chips that helped it achieve a record second quarter. The South Korean memory-chip maker said Thursday that aggressive AI investments by global big technology companies led to a steady increase in demand for AI memory chips, including 12-layer HBM3E products. Shipments of both DRAM and NAND flash memory products were higher than expected, it said.
Straits Times
7 days ago
- Business
- Straits Times
Nvidia supplier SK Hynix to speed up AI investments after record profit
SEOUL – SK Hynix outlined plans to quicken spending on advanced memory chip capacity after reporting record earnings, reflecting surging demand for artificial intelligence (AI) and a drive to stay ahead of rivals. The South Korean company notched a bigger-than-expected 68 per cent jump in operating income to 9.21 trillion won (S$8.6 billion) in the June quarter on a 35 per cent surge in revenue. It now aims to accelerate planned investments preemptively in areas including high-bandwidth memory (HBM), the company said. Demand for memory is expected to continue to grow with customers launching new products in the second half of 2025. The emergence of ChatGPT is prompting nations around the world to build their own AI infrastructure and data that are independent, the company said. The results reinforce SK Hynix's lead over bigger rival Samsung Electronics in high-bandwidth memory that help Nvidia's AI processors. SK Hynix has benefited from Samsung's delay in obtaining Nvidia's certification for its most advanced product, 12-layer HBM3E. That's given SK Hynix an unusually long lead time in the highly lucrative segment. Now, SK Hynix is racing to stay ahead of deeper-pocketed Samsung. Some investors expect the chips-to-smartphone company – which this month reported its first quarterly profit decline since 2023 – to have hit bottom over the summer. Nvidia is shifting toward a new generation of memory chips, offering Samsung an opening. SK Hynix's shares have shed about 10 per cent from a 2025 high they notched in July. Goldman Sachs downgraded the chipmaker for the first time in more than three years on expectations of competitors encroaching on its market share. SK Hynix and Samsung together account for more than 80 per cent of the HBM market. Top stories Swipe. Select. Stay informed. World Trump was told he is in Epstein files, Wall Street Journal reports Opinion The US dollar is down, but it has a lot going for it Singapore Judge asks prosecution for more information on Kpods in first case involving etomidate-laced vapes Singapore Singapore Oceanarium will enhance tourism while supporting sustainability: Grace Fu Singapore 5 teens arrested for threatening boy with knife, 2 charged with causing hurt Singapore Over 1.15 million Singaporeans aged 21 to 59 have claimed SG60 vouchers Opinion Cinemas struggle in a world that cannot sit still Asia Japan PM Ishiba refutes reports of imminent resignation after surprise US trade deal Client Nvidia, which controls more than 90 per cent of the market for chips needed to build AI systems. But long-term prospects for advanced memory makers may depend on expanding beyond Nvidia, given the incentives on the US company to diversify its vendors and negotiate lower prices. SK Hynix is looking to strengthen ties with the likes of OpenAI and deepen ties by building AI infrastructure. OpenAI chief executive officer Sam Altman said in a post on X on July 21 that his company will bring online one million graphics processing units (GPUs) by the end of the year and is trying to figure out how to scale that a hundredfold. SK Group chairman Chey Tae-won, accompanied by SK Hynix CEO recently met with Mr Altman at OpenAI's office in San Francisco. They discussed collaboration on semiconductors including HBM, according to local media. BLOOMBERG
Korea Herald
22-07-2025
- Business
- Korea Herald
Diverging prospects: Samsung eyes rebound, SK braces for HBM shakeup
As fears of HBM oversupply mount, intensifying price competition puts pressure on chipmakers, reshaping AI memory landscape As concerns over a potential supply glut in the high-bandwidth memory market for artificial intelligence semiconductors intensify, South Korea's two memory chip giants — Samsung Electronics and SK hynix — are seeing sharply divergent stock performances. According to the Korea Exchange on Tuesday, so far in July, Samsung Electronics' shares have surged 13.38 percent on the country's main bourse, Kospi, outpacing the broader index's 4.53 percent rise. On the contrary, SK hynix's shares have dropped 6.68 percent during the same period. Analysts say growing fears of oversupply and falling prices in the HBM segment, a key component in AI chipsets, are driving foreign investors to offload shares. This is particularly the case for those of SK, since it holds the No. 1 position in the global HBM market. Samsung's entry into the market of sixth-generation HBM chips, known as HBM4, is expected to erode the price premium previously enjoyed by SK hynix with its fifth-generation HBM3E products. 'There are rising concerns in the market about potential oversupply of HBM from this year and onward,' said Ryu Young-ho, a senior analyst at NH Investment & Securities. 'It has triggered increased selling pressure on SK hynix shares.' At the same time, Samsung Electronics' stock — long overshadowed by SK hynix — has begun to recover as the company secured supply deals for both HBM3 and HBM3E with AMD and Broadcom, signaling renewed confidence in its technological competitiveness. 'If Samsung succeeds in entering Nvidia's HBM supply chain, the oversupply issue could become even more pronounced,' Ryu said. Currently, SK dominates the global HBM market with a 53 percent share, followed by Samsung with 38 percent. With Micron joining the fray, competition is expected to intensify. Samsung shares are also benefiting from expectations of increased HBM revenue, further buoyed by the recent lifting of export restrictions on Nvidia's China-specific AI chip, the H20. With new market avenues opening, Samsung's momentum in the HBM space appears to be strengthening. As the market dynamic shifts, industry insiders are watching whether the HBM sector will transition from a technology-driven race to a price-driven war. Until recently, tight supply allowed suppliers to dictate prices. But as supply loosens, big tech clients like Nvidia and AMD are likely to gain leverage in price negotiations. 'The balance of power is shifting from suppliers to buyers,' said Ryu. 'We may see weaker-than-expected price hikes for the upcoming HBM4 chips.' Investment bank Goldman Sachs also forecast that HBM prices could fall by around 10 percent next year, citing the likely impact of increased competition and capacity. 'HBM has entered a maturing phase,' said an industry source who requested anonymity. 'As supply constraints ease, chip makers will need not only technical excellence but also strong price competitiveness to survive. The real price war is likely to begin in earnest next year.' Against this backdrop, both Samsung and SK are racing to mass-produce HBM4 by the second half of this year. SK was the first chip maker to supply 12-layer HBM4 samples to Nvidia in March. Samsung is expected to follow suit within this month, shipping its samples to both Nvidia and AMD. In an effort to regain lost ground after delays with HBM3E chips, Samsung is utilizing its advanced 1c DRAM technology, which employs a 10-nanometer process, in HBM4, aiming for high precision and yield stability. It is also actively investing in its Pyeongtaek Campus Line 4 (P4) to support volume production. 'Samsung appears to be rebuilding its strategy with a long-term perspective to win back customer trust, rather than focusing on short-term results,' said an anonymous source who is familiar with the matter. 'Though Samsung may be behind SK in HBM development timing, if it can deliver on performance, it still has a strong chance to catch up to its rivals.' SK, meanwhile, is prioritizing stable yields by using the same 1b, the fifth generation of the 10nm process and mass reflow-molded underfill packaging method from HBM3E. It is also deepening collaboration with Taiwan's TSMC to enhance both HBM4 production and advanced packaging capabilities. 'We are accelerating open collaboration with global customers as well as TSMC, not only to develop the highest-performance HBM4 but to reinforce our position as a total AI memory provider,' said Kim Joo-sun, SK hynix president in charge of AI infrastructure.
Time of India
16-07-2025
- Business
- Time of India
US chip policy shift boosts outlook for Samsung, SK Hynix
Seoul: The recent decision by the United States to lift restrictions on Nvidia's AI chip exports to China is expected to significantly benefit South Korean chipmakers Samsung Electronics and SK Hynix , particularly in the high-bandwidth memory (HBM) segment, as reported by The Korea Herald. On Tuesday, US Commerce Secretary Howard Lutnick confirmed that the government has cleared Nvidia to sell its H20 graphics processing units (GPUs) to China. The move is part of broader trade talks with Beijing involving rare earth elements and is aimed at increasing China's dependence on American technology. "We don't sell them our best stuff, not our second-best stuff, not even our third-best". Lutnick added, noting that the H20 is Nvidia's "fourth-best" chip. In April, President Donald Trump had blocked H20 exports to China to limit China's access to advanced US technology. The resulting export freeze left Nvidia with unsold stock, leading to a USD 4.5 billion charge and a USD 2.5 billion drop in quarterly revenue. Now that exports are back on track, demand for HBM chips--which power AI accelerators and high-performance servers by delivering faster data processing than traditional DRAM--is expected to rebound. Samsung and SK Hynix, key HBM suppliers to Nvidia, are likely to see a positive impact. The H20 chip includes both HBM3 and the newer HBM3E memory. While it may not excel at training AI models, it is optimized for inference tasks, an area of AI experiencing rapid growth. Samsung has reportedly been supplying HBM3 for the H20 since last year. However, the earlier export ban had taken a toll, contributing to a 55.9 per cent drop in Samsung's operating profit year-over-year for the second quarter. Meanwhile, SK Hynix, which currently holds the top market share in HBM and was the first to supply HBM3E to Nvidia, stands to gain in the short term from the restored H20 exports. "It's a short-term positive development for the AI GPU and HBM sectors that Nvidia is now able to resume exports to China," said Ryu Hyung-keun of Daishin Securities. "SK Hynix is expected to benefit in the near term from the resumption of H20 shipments."
